New Jersey’s notorious property-tax bills went up once again last year, growing on average by more than $200 or more than 2%, according to the latest data from the state.

The increase pushed the average New Jersey property-tax bill to a record-high $9,490 in 2022, according to the comprehensive data released online Monday by the Department of Community Affairs.

Despite ongoing efforts to slow property-tax growth — including by encouraging shared services by municipalities and increased state aid to K-12 public schools — the average property-tax bill grew by roughly 2.2% year-over-year in 2022, according to the state.

The data was released on the eve of Gov. Phil Murphy’s scheduled presentation of his next state budget, with affordability sure to be a topic of discussion. Administration officials said late Monday that the next budget would demonstrate a significant and continued focus on providing property-tax relief to New Jersey residents. They also highlighted a big year-over-year increase in property taxes that occurred last year in Jersey City, and suggested that was a major factor in driving up the overall rate of increase for the state above 2% last year.”

While much lower than the national inflation rate for 2022 of 6.5%, the latest growth rate for New Jersey property taxes is slightly larger than the year-over-year increase of just under 2% measured in 2021. It also marks the largest rate of growth during Murphy’s tenure, according to historical data.

The latest year-over-year increase in raw dollars, from $9,284 to $9,490, was also the largest nominal increase to occur during Murphy’s time in office.

In all, more than $32 billion was raised through local property taxes in New Jersey last year, funding public school districts and municipal and county governments, according to the state data.

The latest news on New Jersey property-tax bills comes as Murphy and lawmakers have been making a last-ditch effort to promote the state’s new “Anchor” property-tax relief program in the run up to a Feb. 28 application deadline.

The majority of that — about $17 billion — went to public schools. Another $9.56 billion was collected to support municipal budgets and other local services, and $5.68 billion was collected to support county government spending, state data shows.

Property owners in Essex County continued to pay the highest average property taxes in the state, with the typical bill rising by more than $120, to $13,053 last year. Other counties with average bills topping $10,000 were Bergen, $12,522; Union, $12,253; Morris, $11,303; Passaic, $10,662; Hunterdon, $10,600; Somerset, $10,580; and Monmouth, $10,142.

The passing of the $10,000 threshold is particularly relevant, as that is the cap for what was a previously unlimited federal tax deduction for state and local taxes put in place by former President Donald Trump and a then-Republican Congress in 2018. The state’s own income-tax deduction limit for local property taxes is $15,000. It was last changed in 2018, when Murphy and lawmakers increased it from $10,000 to $15,000.

Better news in South Jersey

At the other end of the scale is Cumberland County, where the average property-tax bill rose by just over $100, to $4,739 in 2022. Cumberland and Cape May counties, at $5,886, are the only two counties in New Jersey where average bills remain under $6,000. The next-lowest average bills were levied in Salem County, $6,252; Atlantic County, $6,695; and Ocean County, $6,991.

The latest figures for New Jersey property-tax bills come as Murphy and lawmakers have been making a last-ditch effort to promote the state’s new “Anchor” property-tax relief program in the run-up to a Feb. 28 application deadline.

Average property-tax bills increased by 4.1% in 2010, and by more than 7% in 2005.

Anchor, whose nickname is derived from the program’s formal title, “Affordable New Jersey Communities for Homeowners and Renters,” replaces the state’s long-standing Homestead Benefit. Under Anchor, roughly 900,000 tenants with incomes of $150,000 or less in 2019 are newly eligible to receive renter benefits totaling $450, according to administration estimates.

In addition, more than 1 million homeowners are estimated to be eligible for Anchor benefits that range from $1,000 to $1,500. Homeowners with 2019 incomes over $150,000 and up to $250,000 are eligible to receive a $1,000 Anchor benefit; and homeowners with incomes up to $150,000 in 2019 are eligible to receive a $1,500 Anchor benefit.

Some relief

Under language written into the state budget, Anchor benefits are intended to offset property taxes paid in 2019. Hence, the income and residency requirements are based on where applicants lived and earned their income in that year.

Murphy’s office cited the Anchor program — which increased benefits and also broadened the pool of eligible recipients compared to Homestead — while commenting on the latest increase in the size of the average property-tax bill.

“The figures released today do not factor in property tax rebates such as ANCHOR, which when taken into account mean that many middle- and working-class families are paying significantly less in property taxes than they did when Governor Murphy took office,” Murphy spokeswoman Jennifer Sciortino said. 

More information about the Anchor program and the application process is available online or by calling 1-888-238-1233.

Meanwhile, Murphy on Tuesday afternoon is due to present his budget plan for the new fiscal year that begins July 1. While property taxes are not levied at the state level in New Jersey, funds the state provides to school districts, municipalities and counties can influence the size of local levies. If tradition holds, Murphy could have more to say about tax relief since this year’s budget message coincides with a reelection year for the full, 120-seat state Legislature. Former Gov. Chris Christie, whose two terms in office ended in early 2018, enacted a 2% cap on annual property levy increases in 2011.

That cap law provides for several exceptions which allow for year-over-year increases of more than 2% to occur. They include for debt payments, the costs of pension and health benefits for public employees, and for funding responses to large-scale emergencies. Still, the average New Jersey property-tax bill has increased by no more than 2.4% year-over-year since the cap was enacted, according to the state’s historical data.

By contrast, average property-tax bills increased by 4.1% in 2010, and by more than 7% in 2005, according to the historical data.

— Graphics by Colleen O’Dea and Genesis Obando